DUBLIN, Jan. 14, 2020 /PRNewswire/ -- Perrigo Company plc
(NYSE: PRGO) (TASE: PRGO) Chief Executive Officer and President
Murray S. Kessler will highlight the
progress of the Company's transformation into a consumer self-care
company and discuss certain financial metrics for recently
completed periods later today at the 38th Annual
J.P. Morgan Healthcare Conference.
The presentation will cover the major initiatives completed in
year one of the transformation including efforts to reconfigure the
company's product portfolio, deliver on its base plans, create
repeatable platforms for growth, drive organizational effectiveness
and capabilities, increase productivity, allocate capital and
deliver consistent and sustainable results in-line with
consumer-packaged goods peers.
Kessler commented, "We are pleased to see the business
responding to our transformation efforts. While we have only
completed the first year of our 2 to 3-year transformation journey,
the revenue growth we have seen in the second half indicates that
we are on the right track. The third quarter was strong. The fourth
quarter was outstanding. All business segments delivered stellar
fourth quarter net sales results with strong organic growth. The
Consumer Self-Care Americas segment achieved reported net sales
growth of more than 15% in the quarter versus prior year, with
adjusted organic net sales(1) higher by 11%, led by
strong performances in both the OTC and infant nutrition
businesses. Fourth quarter reported net sales in the Consumer
Self-Care International segment increased 8%, with 4% adjusted
organic net sales growth. Rx had a nice quarter as well, growing
fourth quarter reported net sales by 3% versus last year. Second
half results support our belief that the company will exceed its
long-term revenue target of 3% growth in the coming year."
Preliminary Unaudited Fiscal Year 2019 Net Sales
Results
Benefiting from a strong fourth quarter,
consolidated reported net sales for fiscal 2019 were $4.8 billion for the full year, an increase of 2%
compared to the prior year. Excluding the impact of currency,
adjusted net sales(2) increased 6%. Adjusted organic net
sales were up 3%.
Worldwide Consumer reported net sales were approximately
$3.9 billion, an increase of 2%
compared to the prior year. Excluding the impact of currency,
adjusted net sales increased 6%. Adjusted organic net sales were up
2%.
Consumer Self-Care Americas segment reported net sales were
approximately $2.5 billion, an
increase of approximately 3% compared to the prior year. Excluding
the impact of currency, adjusted net sales increased 7%. Adjusted
organic net sales were up more than 2%.
Consumer Self-Care International segment reported net sales were
approximately $1.4 billion, a
decrease of 1% compared to the prior year. Excluding the impact of
currency, adjusted net sales increased 5%. Adjusted organic net
sales were up 2%.
Rx segment reported net sales were approximately $970 million for the full year, an increase of 5%
compared to the prior year.
The Company currently intends to release its fourth quarter and
full year 2019 financial results in the fourth week of February 2020.
Mr. Kessler's presentation is scheduled for today at
4:30 PM EST. Interested parties
can access the presentation webcast
at http://perrigo.investorroom.com/events-webcasts.
See attached Appendix for reconciliation of adjusted
(non-GAAP) to reported (GAAP) financial measures.
(1) Adjusted organic net sales growth excludes the 2019
acquisition of Ranir, the exited animal health and infant foods
businesses in both periods, the voluntary global market withdrawal
of ranitidine in the third quarter 2019, and the impact of
currency.
(2) Adjusted net sales growth excludes the exited animal
health and infant foods businesses in both periods, the voluntary
global market withdrawal of ranitidine in the third quarter 2019,
and the impact of currency.
About Perrigo Company plc
Perrigo Company plc (NYSE:
PRGO) (TASE: PRGO) is dedicated to making lives better by
bringing "Quality, Affordable Self-care
Products™" that consumers trust everywhere
they are sold. The Company is a leading provider of
over-the-counter health and wellness solutions that enhance
individual well-being by empowering consumers to proactively
prevent or treat conditions that can be self-managed. Visit
Perrigo online at http://www.perrigo.com.
Forward-Looking Statements
Certain statements in this
press release are "forward-looking statements." These statements
relate to future events or the Company's future financial
performance and involve known and unknown risks, uncertainties and
other factors that may cause the actual results, levels of
activity, performance or achievements of the Company or its
industry to be materially different from those expressed or implied
by any forward-looking statements. In some cases, forward-looking
statements can be identified by terminology such as "may," "will,"
"could," "would," "should," "expect," "forecast," "plan,"
"anticipate," "intend," "believe," "estimate," "predict,"
"potential" or the negative of those terms or other comparable
terminology. The Company has based these forward-looking statements
on its current expectations, assumptions, estimates and
projections. While the Company believes these expectations,
assumptions, estimates and projections are reasonable, such
forward-looking statements are only predictions and involve known
and unknown risks and uncertainties, many of which are beyond the
Company's control, including: the timing, amount and cost of any
share repurchases; future impairment charges; the success of
management transition; customer acceptance of new products;
competition from other industry participants, some of whom have
greater marketing resources or larger market shares in certain
product categories than the Company does; pricing pressures from
customers and consumers; resolution of uncertain tax positions,
including the Company's appeal of the Notice of Assessment (the
"NoA") issued by the Irish tax authority and the draft and final
Notices of Proposed Assessment ("NOPAs") issued by the U.S.
Internal Revenue Service and the impact that an adverse result in
any such proceedings would have on operating results, cash flows,
and liquidity; potential third-party claims and litigation,
including litigation relating to the Company's restatement of
previously-filed financial information, securities matters, drug
pricing and uncertain tax positions, including the NoA and the
NOPAs; potential impacts of ongoing or future government
investigations and regulatory initiatives; potential costs and
reputational impact of product recalls or sales halts; the impact
of tax reform legislation and healthcare policy; general economic
conditions; fluctuations in currency exchange rates and interest
rates; the consummation of announced acquisitions or dispositions
and the success of such transactions, and the Company's ability to
realize the desired benefits thereof; and the Company's ability to
execute and achieve the desired benefits of announced
cost-reduction efforts and strategic and other initiatives.
An adverse result with respect to the Company's appeal of any
material outstanding tax assessments or litigation including
securities matters or drug pricing could ultimately require the use
of corporate assets to pay such assessments, damages resulting from
third-party claims, and related interest and/or penalties, and any
such use of corporate assets would limit the assets available for
other corporate purposes. Statements regarding the separation
of the RX business, including the expected benefits, anticipated
timing, form of any such separation and whether the
separation ultimately occurs, are all subject to various risks and
uncertainties, including future financial and operating results,
our ability to separate the business, the effect of existing
interdependencies with our manufacturing and shared service
operations, and the tax consequences of the planned separation to
the Company or its shareholders. Furthermore, the Company may incur
additional tax liabilities in respect of 2016 and prior years or be
found to have breached certain provisions of Irish company law in
connection with the Company's restatement of previously-filed
financial statements, which may result in additional expenses and
penalties. These and other important factors, including those
discussed under "Risk Factors" in the Company's Form 10-K for the
year ended December 31, 2018, as well as the Company's
subsequent filings with the United States Securities and Exchange
Commission, may cause actual results, performance or achievements
to differ materially from those expressed or implied by these
forward-looking statements. The forward-looking statements in this
press release are made only as of the date hereof, and unless
otherwise required by applicable securities laws, the Company
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Non-GAAP Measures
This press release contains certain
non-GAAP measures. A "non-GAAP financial measure" is defined as a
numerical measure of a company's financial performance that
excludes or includes amounts different from the most directly
comparable measure calculated and presented in accordance with U.S.
Generally Accepted Accounting Principles ("GAAP") in the statements
of operations, balance sheets or statements of cash flows of the
Company. Pursuant to the requirements of the U.S. Securities and
Exchange Commission, the Company has provided reconciliations for
guidance for adjusted diluted earnings per share to the most
directly comparable U.S. GAAP measures for these non-GAAP measures.
These non-GAAP financial measures should be considered as
supplements to the GAAP reported measures, should not be considered
replacements for, or superior to, the GAAP measures and may not be
comparable to similarly named measures used by other companies.
PERRIGO COMPANY
PLC
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RECONCILIATION OF
NON-GAAP MEASURES
|
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CONSTANT CURRENCY
- NET SALES
|
|
|
|
|
|
|
|
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|
(in
millions)
|
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|
|
|
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(unaudited)
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Three Months
Ended
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|
December 31,
2019
|
|
December 31,
2018
|
|
Total
Change*
|
|
FX
Change*
|
|
Constant
Currency
Change*
|
CSCA net
sales
|
$
|
710.5
|
|
|
$
|
616.9
|
|
|
15%
|
|
|
|
|
Less: animal
health
|
—
|
|
|
(15.3)
|
|
|
|
|
|
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Less: infant
foods
|
—
|
|
|
(7.0)
|
|
|
|
|
|
|
|
CSCA net sales as so
adjusted
|
$
|
710.5
|
|
|
$
|
594.6
|
|
|
|
|
|
|
|
Less:
Ranir
|
(52.2)
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|
|
—
|
|
|
|
|
|
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|
Organic CSCA net
sales as so adjusted
|
$
|
658.3
|
|
|
$
|
594.6
|
|
|
11%
|
|
—%
|
|
11%
|
|
|
|
|
|
|
|
|
|
|
CSCI net
sales
|
$
|
356.4
|
|
|
$
|
329.4
|
|
|
8%
|
|
|
|
|
Less:
Ranir
|
(22.2)
|
|
|
—
|
|
|
|
|
|
|
|
Organic CSCI net
sales as so adjusted
|
$
|
334.2
|
|
|
$
|
329.4
|
|
|
1%
|
|
3%
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
RX net
sales
|
$
|
255.9
|
|
|
$
|
248.8
|
|
|
3%
|
|
(1)%
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
*May not foot due to
rounding.
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PERRIGO COMPANY
PLC
|
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|
|
RECONCILIATION OF
NON-GAAP MEASURES
|
|
|
|
|
|
|
|
|
|
CONSTANT CURRENCY
- NET SALES
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
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|
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Twelve Months
Ended
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|
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|
|
|
December 31,
2019
|
|
December 31,
2018
|
|
Total
Change*
|
|
FX
Change*
|
|
Constant
Currency
Change*
|
Worldwide Consumer
net sales
|
|
|
|
|
|
|
|
|
|
CSCA
|
$
|
2,487.7
|
|
|
$
|
2,411.6
|
|
|
|
|
|
|
|
CSCI
|
1,382.2
|
|
|
1,399.3
|
|
|
|
|
|
|
|
Worldwide Consumer
net sales
|
$
|
3,869.9
|
|
|
$
|
3,810.9
|
|
|
2%
|
|
|
|
|
Plus: Ranitidine
market withdrawal**
|
9.2
|
|
|
—
|
|
|
|
|
|
|
|
Less: animal
health
|
(43.7)
|
|
|
(93.9)
|
|
|
|
|
|
|
|
Less: infant
foods
|
(6.1)
|
|
|
(34.1)
|
|
|
|
|
|
|
|
Worldwide Consumer
net sales as so adjusted
|
$
|
3,829.3
|
|
|
$
|
3,682.9
|
|
|
4%
|
|
2%
|
|
6%
|
Less:
Ranir
|
(151.4)
|
|
|
—
|
|
|
|
|
|
|
|
Organic Worldwide
Consumer net sales as so adjusted
|
$
|
3,677.9
|
|
|
$
|
3,682.9
|
|
|
—%
|
|
2%
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
*May not foot due to
rounding.
|
|
|
|
|
|
|
|
|
|
**Ranitidine market
withdrawal includes reversal of recorded returns.
|
|
|
|
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PERRIGO COMPANY
PLC
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
NON-GAAP MEASURES
|
|
|
|
|
|
|
|
|
|
CONSTANT CURRENCY
- NET SALES
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
December 31,
2019
|
|
December 31,
2018
|
|
Total
Change*
|
|
FX
Change*
|
|
Constant
Currency
Change*
|
Consolidated net
sales
|
$
|
4,837.4
|
|
|
$
|
4,731.7
|
|
|
2%
|
|
|
|
|
Plus: Ranitidine
market withdrawal**
|
9.2
|
|
|
—
|
|
|
|
|
|
|
|
Less: animal
health
|
(43.7)
|
|
|
(93.9)
|
|
|
|
|
|
|
|
Less: infant
foods
|
(6.1)
|
|
|
(34.1)
|
|
|
|
|
|
|
|
Consolidated net
sales as so adjusted
|
$
|
4,796.8
|
|
|
$
|
4,603.7
|
|
|
4%
|
|
2%
|
|
6%
|
Less:
Ranir
|
(151.4)
|
|
|
—
|
|
|
|
|
|
|
|
Organic Consolidated
net sales as so adjusted
|
$
|
4,645.4
|
|
|
$
|
4,603.7
|
|
|
1%
|
|
2%
|
|
3%
|
|
|
|
|
|
|
|
|
|
|
CSCA net
sales
|
$
|
2,487.7
|
|
|
$
|
2,411.6
|
|
|
3%
|
|
|
|
|
Plus: Ranitidine
market withdrawal**
|
7.4
|
|
|
—
|
|
|
|
|
|
|
|
Less: animal
health
|
(43.7)
|
|
|
(93.9)
|
|
|
|
|
|
|
|
Less: infant
foods
|
(6.1)
|
|
|
(34.1)
|
|
|
|
|
|
|
|
CSCA net sales as so
adjusted
|
$
|
2,445.3
|
|
|
$
|
2,283.6
|
|
|
7%
|
|
—%
|
|
7%
|
Less:
Ranir
|
(106.4)
|
|
|
—
|
|
|
|
|
|
|
|
Organic CSCA net
sales as so adjusted
|
$
|
2,338.9
|
|
|
$
|
2,283.6
|
|
|
2%
|
|
—%
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
CSCI net
sales
|
$
|
1,382.2
|
|
|
$
|
1,399.3
|
|
|
(1)%
|
|
|
|
|
Plus: Ranitidine
market withdrawal**
|
1.8
|
|
|
—
|
|
|
|
|
|
|
|
CSCI net sales as so
adjusted
|
$
|
1,384.0
|
|
|
$
|
1,399.3
|
|
|
(1)%
|
|
6%
|
|
5%
|
Less:
Ranir
|
(45.0)
|
|
|
—
|
|
|
|
|
|
|
|
Organic CSCI net
sales as so adjusted
|
$
|
1,339.0
|
|
|
$
|
1,399.3
|
|
|
(4)%
|
|
6%
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
RX net
sales
|
$
|
967.5
|
|
|
$
|
920.8
|
|
|
5%
|
|
—%
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
*May not foot due to
rounding.
|
|
|
|
|
|
|
|
|
|
**Ranitidine market
withdrawal includes reversal of recorded returns.
|
|
|
|
|
|
|
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SOURCE Perrigo Company plc